Bhuwalka Steel Industries Limited announced that its board of directors at a meeting held on February 25th 2008 has cleared the taking over of Benaka Sponge Iron Private Limited at Bellary by way of all cash deal of INR 9.9 crore as a part of its strategy of backward integration.

Benaka is located in Belagal Village of Bellary and is very close to iron ore mining belt. Benaka has at present 2 Kilns of coal based sponge iron plant of the capacity of 100 tonnes per day each. Benaka is estimated to post a turnover of INR 56 crore with a net profit of INR 3 crore during 2007-08.

With this takeover, Bhuwalka Steel will have access to sponge iron to the tune of 60,000 tonne per annum immediately and also this site will be available for future growth.

Mr Suresh Kumar Bhuwalka MD said that Benaka will become subsidiary of Bhuwalka Steel Industries and will enable the group to step into Steel making through prime route by integrating facilities like sponge, power, steel melting shop and rolling under one roof.